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Personal loan is the most common type of loan applied by people all over the world. In an emergency to meet expenses like construction, wedding etc. one thinks of personal loan. A personal loan is very handy and easily available. But the only downside of this loan is that not all applicants of personal loan are approved.
Usually, the process of approving the personal loan is long. So, it is advisable by experts to keep the documents and purpose of personal loan ready. But this alone doesn’t suffice. In addition to this, for faster personal loan read the tips and tricks mentioned below.
Tricks for faster approval of personal loan
Personal loan approval odds are not always in favour of an applicant. In spite of having a good credit rate and valid documents, the process may take longer. For faster loan approval, read the tricks mentioned below:
- Start applying for a personal loan online:
he first and foremost trick for favourable loan approval odds is applying online. Most of the lenders and banks allow applicants to apply for a personal loan online. These lenders make a promise of granting the online applied loan quicker. So make use of such services and start applying for a personal loan via online portals. This method of applying is faster and also saves time spent on trying to meet the lender in person.
- Limit the number of places you apply for a loan:
It is understood that personal loan approval takes time. But this doesn’t mean that you apply for a loan in multiple banks. The drawback of such behaviour is that it affects the credibility of the applicant. Don’t waste time by visiting multiple lenders and applying everywhere. This shows the desperation of the applicant to the lender.
Instead, try and concentrate on one lender when applying for a personal loan.
- Keep your credit history clean:
The next trick for faster personal loan application approval is keeping the credit history clean. The first thing the lender would do is check the credit history of the applicant. In case the applicant has defaulted in paying previous EMI’s the chance of approval is less.
Before applying for a personal loan, make sure you have a clean credit score. Paying your EMI’s on time is the best way to maintain a good credit score.
- Applying for loans back-to-back should be avoided:
Yet another trick that you need to remember is not applying for back-to-back loans. It is necessary that you don’t take way too many loans in a short period. Existing loans with less than six instalments paid to reduce the chances of personal loan approval.
- Maintain a strict income-loan ratio:
The experts repeatedly inform that any individual for financial health must maintain an income to debt ratio. The income of the family as a whole must equal to only forty per cent of the loan. Follow this system to increase loan approval odds in your favour.
- Take a loan by leveraging life insurance policy:
The less known strategy for a quick personal loan is leveraging life insurance policy. In case an individual is the owner of a life insurance policy, then he or she can take a loan against it. The loan is taken against the cash value at a pre-determined rate. Though, this method of taking a personal loan is not common; it is legal.
- Be honest in your loan application:
Misinterpreting information or sharing wrong information is a recipe for disaster. Understand the loan documents properly. Fill the entire personal loan application with the right information after considering the facts. In case an applicant makes a mistake or lies on the application form, then their loan process will be delayed. Hence, the best and most effective way for a faster personal loan is honesty.
- Stick to your decision strongly:
After applying for a loan, the lender informs the applicant whether it’s approved or not. In case the loan is approved, go ahead and sign the contractual agreement. In case an individual doesn’t do it and goes looking for better options, then disbursal of funds will be delayed. So, you must avoid sitting on an offer for too long.
The personal loan approval odds are generally less. When given an offer, go ahead with the next step and complete the loan process.
With this, the article on tricks to follow for getting quick personal loan approval is concluded. The tricks mentioned in the article are practical and helpful. Any loan approval takes time as the lender wants to be careful about his money. But with the help of the above-mentioned points, one can fasten the process of loan approval.